01.02.202317:54 Forex Analysis & Reviews: Short-term technical analysis on Bitcoin for February 1st, 2023.

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Blue lines- wedge pattern broken

Red lines- Fibonacci extension targets

Bitcoin is trading around $23,000. Recently price broke our and below a wedge pattern confirming our warnings that a pull back is imminent. Price has so far made a lower high and if we see price break below $22,522 low, then we should expect further weakness in price. Bitcoin remains vulnerable to the downside. In the near term we have our first reversal signal. A break below $22,500 will increase chances of a move lower towards our next downside target at the 100% Fibonacci extension at $21,850. Taking into consideration the possibility that the entire upward move might be over, Bitcoin could decline at least towards $21,800 but more likely towards $20,000 and why not lower. Upside potential we believe is limited to a move towards $25,000.

Alexandros Yfantis
Analytical expert of InstaForex
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